EUTR- Early Impacts and Lessons

Anand Punja

Timber Trade Federation, UK

Overview

• EUTR & VPA

• Summary of EUTR

• UK Enforcement/ implementation of EUTR

– Approach

– Early lessons

• TTF Support to Trade

EU Policy Response

EU Forest Law Enforcement Governance and Trade (FLEGT) ACTION PLAN

FLEGT Voluntary Partnership

Agreements with countries exporting

timber to the EU

EU Timber Regulation covering

all timber first placed on the EU

market

EU Timber Regulation

• What?

– Prohibition on placing illegal timber on EU market

– Obligation to undertake Due Diligence if first placing

• When?

– Effective from March 3rd 2013

• How?

– Due diligence system in place for all “Operators” placing timber/ timber products on to EU market

– Traceability requirements for “Traders”

Operator/ Trader Definitions & Obligations

• Operator – any natural or legal person that places timber or timber

products on the market;

– Obligation to undertake Due Diligence

• Trader – any natural or legal person that, in the course of a commercial

activity, sells or buys on the internal market timber or timber products already placed on the internal market

– Obligation to have traceability “one up/ one down”

• No Legal Obligation for Exporters – Commercial obligation to support EU buyer with information to

provide confidence of “legal” product

EU Timber Regulation (EUTR) Operators Due Diligence

• Collect Information on products

• Assess risk of product being from illegal sources – Negligible/ Non Negligible?

• Mitigate risk if non-negligible – Further documentation on legal origin, SS chain control

– Audits (1st/ 2nd / 3rd party)

– 3rd party Certification/ Verification

EU Timber Regulation (EUTR) Due Diligence

What information do you need to have access to? I. Product description

II. Species (trade and scientific name)

III. Country of harvest (inc sub-regions if required)

IV. Quantity (vol./ weight/ units)

V. Name & address of supplier

VI. Documents/ other info indicating legal compliance a. at origin; e.g. felling licences, forest management plans etc

b. sufficient controls in supply chain; delivery notes, invoices, company systems procedure manuals etc

c. Third party information; FSC/ PEFC, OLB/ TLTV, independent audits etc.

Identifying the Operator

• TTF been lobbying for clearer way to ID operator – Pushing for CA’s to use customs declaration as point of

verification as single point of verification

• Discussed and agreed at last FLEGT meet

• EC working on updating guidance- imminent

• Provides greater flexibility structure shipping terms to suit when brokers/ middlemen involved

Possible Criminal Offences (UK)

• Operator who; – places illegally harvested timber on the EU market;

– fails to apply due diligence when placing timber on the EU market;

– fails to maintain a due diligence system;

– obstructs an inspector; or

– fails to act on a remedial notice.

• Operators & Traders – Failure to maintain records for traceability (for 5 years)

– Disclose unauthorised info

UK Enforcement

UK Enforcement

UK Enforcement

UK Enforcement

UK Enforcement

TTF Support to Trade

• Screen out products where risk manag’t is in hand & RPP provides guidance on schemes; – negligible risk (FSC/ PEFC certified & FLEGT)

– managed risk (legality verification, TTAP, TFT, GFTN)

• Tools and guidance to collect information on other timber products to assess risk

• Mitigate risk by taking actions proportionate to risk

• Records outcomes of risk assessment and mitigation

• Builds risk profile of members business

• Independent verification of disclosure – Ensures an objective risk assessment

– Looks for continuous improvement

• Independent body collates annual disclosure

Thank you for listening Anand Punja

Timber Trade Federation, UK

apunja@ttf.co.uk